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Jobs for 235 new government employees will be created here in the largest expansion by the Buffalo District of the Internal Revenue Service.

The total annual salaries for the jobs were estimated at $3.23 million today during a press conference to announce the expansion of IRS telephone information operations in the Buffalo area.

The jobs will mean good news for the Buffalo economy and better service for Connecticut residents who have questions about U.S. tax laws, said District Director Donald Mitgang.

"This is the largest increase in staffing ever experienced by the Buffalo District," Mitgang said, adding that the increase will push the number of IRS employees in the area to more than 1,000.

The IRS will conduct a recruiting drive to find new workers, most of whom will work as taxpayer service representatives to field questions from taxpayers calling an a toll-free information line. Mitgang said the jobs will range from part-time positions paying $6.50 an hour to nine management positions with annual salaries averaging $26,000.

Connecticut residents who are puzzled about U.S. tax laws will have their calls transferred to Buffalo under the new setup, Mitgang said.

At present, all Connecticut callers to the toll-free information line are connected to taxpayer service representatives in Boston. Beginning Jan. 1, the Connecticut calls will be directed to Buffalo.

The shift, devised to ease the workload for Boston operators, will increase from 600,000 to 1.1 million the number of calls now handled by Buffalo each year.

The Buffalo District, which encompasses 32 counties in western and central areas of the state, now handles about 1.9 million tax returns a year.

Buffalo and Boston are two of the 29 toll-free "call sites" for the IRS information service. The service is run year-round but handles most of its calls between Jan. 1 and April 15.

The service representatives will receive six to eight weeks of training in tax procedures and will begin work Jan. 3. Working out of offices on the 15th floor of the Federal Building at 111 W. Huron St., they will answer some taxpayers' questions immediately, and refer others to IRS specialists.

Walk-in testing for job applicants will be held Thursday at 9 a.m. in the Harvey Morin Post, Veterans of Foreign Wars, 965 Center Road, West Seneca, and at 9 .m. on Oct. 8 in the Connecticut Street Armory, 184 Connecticut.

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